The Enhanced Oil Recovery Institute (EORI) offers proactive solutions to Governor Gordon for the survival of Wyoming’s Oil and Gas Industry during this downturn.
The Institute predicts unconventional drilling will become less important while improved and enhanced recovery methods in conventional reservoirs will be of critical importance to Wyoming’s oil and gas sector due to expected oil prices. The Institute offers immediate changes be considered to the Wyoming Oil and Gas Conservation Commission (WOGCC) policies regarding the approval of idle well bonds to initiate construction.
EORI Offers Imperative and Immediate changes to WOGCC Policies that May Improve Production in Wyoming:
- Eliminate the Idle Well Bond Policy
- Consider establishing a tiered Blanket Bond
- Incentivize EOR activity
- Establish a maximum 60-day time limit for reviewing and actioning water flood and disposal well applications
- Extend the time period of inactivity before a well is considered “Idle” to consecutive 24 months.
- Before the state demands that a well should be plugged, it should be evaluated to determine if it has any remaining recoverable reserves.
The EORI notes “All of these options come at no out-of-pocket cost to the State. None of these suggestions require any additional spending by any agency. These options provide survivability options and can greatly assist the Wyoming oil industry. The net result of enacting these suggested options would be a more appealing environment for oil and gas operators to initiate improvements to production and provide an increase in recoverable reserves. Wyoming jobs will be preserved and tax revenue to the state can be maintained or improved during these unprecedented low oil price and COVID-19 driven times”
The Enhanced Oil Recovery Institute is committed to working with Wyoming Oil producers to increase oil production, and as a result, increase tax revenues to the state. EORI works to help the State of Wyoming and its energy producers to recover a large resource of stranded oil in depleted oil reservoirs as rapidly, responsibly, and economically as possible.